What is freight forwarding? It’s a fair question, and in the world of logistics, a vitally important one. A freight forwarder is a vital piece of the supply chain puzzle, and in today’s post, we are going to explore what a freight forwarder is responsible for and how they can help take your logistics to the next level. 

A freight forwarder, essentially, represents businesses in the arrangement and management of shipments and cargo. They are a logistics go-between that leverages a lengthy list of vetted international contacts to make sure that your business is moving effectively, at the best prices, and with the least amount of risk. They offer alternatives and cost-effective options that might otherwise have been missed, and work together to ensure that any supply chain challenges you face are resolved quickly and effectively. 

Leveraging a freight forwarder’s expertise and presence in the industry is incredibly important, but its role and benefit for supply chains is not always immediately apparent - particularly for businesses that are unfamiliar or have not used one in the past. Someone new to international trade may be curious why adding an additional step to their supply chain would actually be good, and it’s a fair thought, that is, until you see firsthand what a freight forwarder can do for your logistics. 

Who Should Use a Freight Forwarder? 

Ultimately, a freight forwarder’s effectiveness is directly linked to volume and complexity - specifically in the supply chain. Let’s imagine you are making a bespoke product and selling it from your home. A direct connection with your carriers makes a lot of sense in that case. Your supply chain is small and manageable, likely consisting of a single carrier and maybe a handful of other operators. In this example, you probably negotiated with the carrier yourself, determining a price that worked for you, and potentially building a relationship that has yielded a benefit year over year. Due to the fact that your supply chain is relatively small, a freight forwarder probably isn’t needed; however, this situation changes significantly when volume and complexity start to mount. 

Let’s imagine that your business explodes in both size and scope, and with it, your logistical needs. Now you aren’t just shipping single items from your home, but manufacturing them on a significant scale. You aren’t just driving to the lumber yard and picking up what you need - you’ve got carriers moving materials all around the country and potentially the world, which is to say nothing of the increased logistical needs of fulfilling your finished products, which may need special transportation like air or sea freight. 

If you attempted to maintain the same level of direct control over every element of this operation, you would be overwhelmed almost immediately. In this scenario, you’d be dealing with anywhere from five to ten different companies, each with its own specific and unique contracts and needs, a swelling supply chain with increasingly complicated parts, and a need to meet this demand quickly, which means potentially moving forward without proper vetting or relationship building. The reality is that most medium or large-scale businesses do not have the time or the bandwidth to operate the same way small businesses do when it comes to logistics.

This is where a freight forwarder steps in. 

What Does a Freight Forwarder Do? 

At a fundamental level, a freight forwarder manages every element of your freight from start to finish - they also serve a vital role in the creation, maintenance, and execution of your supply chain. 

Some of the benefits that a freight forwarder can offer your business include: 

• Provide a vetted and trusted network of carriers. 
  
  • Not having to spend the time finding trustworthy carriers can be a value add all on its own. Not only do you save time, but you also know that the people you are working with are trusted in the industry. 
• Assist with compliance and regulatory assistance 
  
  • Canada Border Services Agency and Customs and Border Protection have a host of compliance and regulatory challenges awaiting businesses looking to make it through ports of entry. Freight forwarders routinely work closely with brokers to make sure that you have what you need to import quickly, easily, and compliantly. 
• Help with paperwork for air, sea, and land transportation is handled. 
  
  • One of the larger headaches is the host of contracts that can pile up when working with complex or logistics chains. Working with a freight forwarder often minimizes or entirely eliminates your need for multiple contracts. 
• Access to a wealth of expertise
  
  • When working with an experienced freight forwarder, like the ones you’ll find at PCB, you get a wealth of knowledge regarding what works and what won’t work. With a skilled freight forwarder, you can rest easy knowing that your risk is low. Speaking of PCB, it bears mentioning that we offer all-risk insurance for all your transportation needs. 

What are the Advantages of Freight Forwarders? 

It’s often a difficult hill to get over, the question of ‘why add an additional step to a supply chain, but the answer, in the case of freight forwarders, is surprisingly simple. A freight forwarder takes the complex process of developing, executing, and managing your supply chain and streamlines it into the best possible version. With the help of a freight forwarder, your company benefits from the knowledge and expertise of an industry expert who has done the hard part and is ready to help get your cargo moving. 

If you are looking for assistance with your freight forwarding needs, look no further than PCB Freight Management. We have been helping companies with their logistics for decades, and our offerings are as robust as our team is tenured. For help with shipments of any size, shape, or quantity, be sure to contact our team today. We are standing by, ready to help!